Why This Course? 

A thorough understanding of the annual accounts is critical to decipher the true state of affairs, results, creditworthiness, and enterprise valuation. Gain insight into the most crucial reports in just 2 days.

The learning & outcome

1. Understand the Annual Report (Structure and Purpose)

• Introduction to annual reports: listed (regulated) vs. non-listed (flexible).
• Key sections: foreword/CEO review, financial statements, notes, audit report.
• Understand GAAP vs. IFRS and their impact on reporting.
• Identify data sources: company websites, legal websites, and stock exchange information.

2. Financial Analysis: Master Quantitative Analysis of Financial Data

• The profit and loss statement: Revenue, costs, profitability.
• Balance sheet: Assets, liabilities, equity.
• Cash flow statement: Operating, investing, and financing activities.
• Ratios: liquidity (current ratio), profitability (ROS), investors (ROE), efficiency (DSO, DPO, DIO).

3. Non-Financial: Qualitative Analysis Influencing Performance

• Business model, strategy, and market position.
• Risk factors: legislation, environment, operational.
• Governance and sustainability (ESG).
• Management perspective on growth and external insights (news, social media).

4. Conclusion and Recommendations

• Financial Analyst: Trends, forecasts.
• CFO/Credit Manager: Liquidity, creditworthiness (DSO, cash flow).
• Investor/Shareholder: ROI, growth potential.
• Supplier/Customer: Payment reliability, and stability.
• SWOT analysis, benchmarking, and scenarios (short vs. long term).

5. Presentation and Reporting: Communicate Findings Clearly and Effectively

• Structure reports with key figures and visuals (e.g., profit trends).
• Tailor presentations: technical for analysts, simple for clients.

6. Case Study: Practical Learning with AI-Driven Research

• Objective: Apply skills using AI tools.
• Use AI for stakeholder insights and competitor comparison.
• Develop AI-supported recommendations and predictions.

• Finance managers and controllers who need stronger expertise in financial statement analysis.
• CFOs and senior finance leaders responsible for liquidity, solvency, and performance oversight.
• Financial analysts seeking deeper insight into trends, valuation, and forecasting.
• Consultants advising clients on strategy, restructuring, or performance improvement.
• Investors and shareholders evaluating returns, risks, and long-term growth potential.
• Credit managers and lenders assessing creditworthiness and repayment capacity.
• Business owners and directors who want clearer insight into company health and results.
• Procurement and commercial professionals reviewing the stability of key business partners.
• Managers preparing for broader P&L or strategic responsibility.
• Professionals who must convert annual report data into actionable recommendations.

Day 1:

09:00 - 10:45 | Financial Statements Introduction

• Introducing the key source of information for stakeholders of the organisation and their importance.

• Learn the importance of the management commentary.

• The balance sheet: content, structure and linkages.

• The income statement: content, structure and linkage with the balance sheet.

• Cash flow statement: importance, creation and evaluation.

• Evaluation of the notes to the accounts and audit report.

10:45 - 11:30 | Introduction to our Case Study

• The case study is used throughout the 2-day programme to assess the full complexity of an annual report.

• After each topic participants apply the techniques learned in practice.

11:30 - 12:30 | The Nature of Financial Statements

• Who needs financial statements and analysis of the external stakeholders?

• Reporting to external stakeholders.

12:30 - 13:30 | Lunch Break

13:30 - 14:45 | The Balance Sheet

• Learn how the balance sheet is structured.

• Critical analysis of the items.

• Analysis of current and non-current assets.

• Analysis of tangible and intangible items.

14:45 - 15:45 | The Income Statement

• Learn the structure of the income statement.

• Determine what is recorded in the income statement.

• Analyse the different levels of profit.

• Assumptions and their impact.

15:45 - 17:00 | The Cash Flow Statement

• What is cash flow?

• What is reported in the cash flow statement?

• How is a cash flow statement organised?

• Cash flow from operating activities.

• Cash flow from investing activities.

• Cash flow from financing activities.

Day 2:

09:00 - 10:15 | Ratio and Performance Analysis: An Introduction

• Interpreting figures and business trends from the balance sheet, income statement and cash flow statement.

• Who needs ratios and why?

• Historical ratio analysis, peer and industry comparison.

10:15 - 11:30 | Evaluation and Analysis of Profitability Ratios

• Introduction to profitability ratios.

• Return on Sales (ROS) and efficiency analysis.

• Asset Utilisation Ratio (AUR) and effectiveness analysis.

• Return on Capital Employed (ROCE) and profitability assessment.

11:30 - 12:30 | Liquidity and Solvency

• Determine the sources of finance.

• Liquidity introduction.

• Use of current ratio and quick ratio.

• Working capital and its importance.

• Solvency, leverage and gearing.

12:30 - 13:30 | Lunch Break

13:30 - 14:30 | Operating Efficiency

• Learn about the production cycle.

• Creditor days and what is acceptable.

• Stock days and inventory management.

• Trade receivable days and managing collection days.

14:30 - 15:45 | Investor Ratios

• Return on equity.

• Pay-out ratio.

• Interest cover.

• Earnings per share.

• Residual income.

15:45 - 17:00 | Critical Review and Conclusion on our Case

• Advantages and limitations of ratios.

• Sofie, Manager at a consultancy firm: "From balance sheets to strategy, everything was clearly explained. The presentation tips make my advice more convincing. Perfect for consultants!"
• Ahmed, CFO of a medium-sized company: "Cash flows and ratios like DSO are no longer a mystery. The AI tools assist me practically in my work. Extremely valuable for credit management!"
• Peter, Financial Analyst: "This training gave me insight into annual reports in just two days. The AI case study was a game-changer for competitor analysis. A real boost for my work!"